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E-commerce: characteristics and development

E-commerce, electronic commerce, online and internet
trading: all of those terms indicate the acquisition and sale of products or
services using electronic information technologies. the net is that the core technology.
But other sorts of digital data transmission and processing – like mobile
communications, electronic customer databases or accounting software – also are
utilized by companies. What exactly is e-commerce, what advantages and
drawbacks does it have and what are this trends in online trading?

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Table of Contents

What is e-commerce?

Advantages of electronic commerce

Downsides of electronic commerce

Current trends in Internet trade

What is e-commerce?

In addition to the acquisition process itself , electronic
commerce includes all processes that initiate and process a procurement . an
internet shop acts as a central sales platform on which prospective buyers
cannot only browse the range, but also order and pay employing a digital
system. An electronic inventory management system registered the merchandise
sold and updates the inventory. An RFID chip tracks the shipping route. CRM
systems successively allow you to remain involved with the customer.

In a narrower definition, e-commerce thus forms a part of
e-business . This includes all automated business processes during which
electronic information and communication technologies are used. The aim of
using largely automated business processes is to create work more efficient and
increase sales.

Digital technologies form the idea of electronic commerce.
Suppliers and customers exchange data digitally as a part of e-commerce. Here
could also be involved very different technologies:The spectrum ranges from
simple radio technology (e.g. Bluetooth) to highly complex systems supported
computing (AI). additionally to communication technologies like the net and
telephony, electronic databases and data processing software also are used,
social media or television are used as advertising channels, payments are
processed via online banking and chatbots take over customer service. during
this way, a widespread digital infrastructure is formed from wireless or wired
networks. The common denominator is that the undeniable fact that spatial
distances are overcome. Sometimes this completely replaces physical contact.
E-commerce eliminates the requirement for consumers to travel to a
brick-and-mortar store or face-to-face advice.

Definition:
e-commerce

The term “e-commerce” – or “eCommerce” –
comes from the English term “electronic commerce” and means
“electronic commerce” in German. All processes associated with the
acquisition and sale of products and services are administrated using digital
systems – be it the net, computerized databases or accounting software.

Characteristic of e-commerce

The purpose of electronic trading is to optimize sales
processes in order that the businesses concerned generate more sales . All
operations associated with sales are to be made more efficient and also the
associated costs are to be reduced. With the assistance of the net, companies
have gained new sales channels via online shops, marketplaces (e.g. Amazon) or
auction platforms (e.g. eBay) . They win new customers through social media,
digital advertisements and newsletters and maintain numerous customer
relationships with relatively little effort using automated CRM systems.

Online retailers often decide which technologies and sales
channels they use, betting on the industry and business objective . it’s by no
means necessary to digitize all processes. Rather, the trend is towards
multichannel and cross-channel marketing, which uses several selected channels
at the identical time. for instance, a furniture store can gain customers by
being present online. At the identical time, it should still offer a stationary
shop or a minimum of a showroom. There, customers can inspect the favourite
kitchen unit or collect furniture ordered online themselves to save lots of
freight forwarding fees.

In electronic commerce, it’s important to coordinate all
channels in a perfect way . The electronic technologies used must be integrated
in addition as possible into the worth chain – from logistics to marketing to
customer service. for instance, a product advertised on the web site should
even be available within the warehouse.

Electronic trading serves to extend efficiency . for
instance, online trading quickens sales processes. Because customers can use it
to simply browse the range from their smartphone or computing machine and order
at any time. Computer-based systems automate processes, which implies saving
time. At the identical time, this also reduces personnel costs . If you are
doing not run a business establishment, e-commerce even eliminates rent. And
selling digital offers over the net is much cheaper than selling them through
the post or comparable service providers. Companies may open up new sales
markets more easily and cost-effectively via e-commerce. B. act nationally.

E-commerce allows any quite business transaction . Business
will be done, for instance, both within the B2B area (business relationships
between companies) and within the B2C area (business between companies and
consumers).